u/East_Atmosphere2628 — reddlx

Taylor’s plan to index tax brackets

“Angus Taylor is poised to raise the stakes in the battle over tax and aspiration by unveiling plans to automatically index tax brackets”

Indexing tax brackets, either to inflation or the 2.5 per cent midpoint Reserve Bank’s inflation target, would cost the budget billions a year, which would compound over time.”

This seems like real progress and finally something that addresses the fact that the 47% tax bracket has only increased by 10k since 2009 when it was 180k.

If that bracket had been increased with inflation it would be over 270k this year. Instead, 1 in 10 full time workers are expected to be paying top tax by 2030. And obviously there are similar effects in the lower brackets too

archive.md

u/East_Atmosphere2628 — 9 days ago

▲ 5 r/AusFinance

What a joke.

People haven’t forgotten that recommendations from the productivity summit was very much a two sided equation. Tax more on assets and LESS on labour. Chalmers has used the whole housing farcical to steer attention to one and completely mug off the other.

A big fuck you to the younger generation that’s trying to get ahead in life.

*Treasurer Jim Chalmers has played down the prospect of new tax cuts in this month’s budget by highlighting the swag of tax relief measures already in the pipeline.

All but confirming the budget will be primarily about increasing taxes and not reducing others, the treasurer pointed to the already legislated income tax cuts of $5 a week that will start on July 1 and increase by another $5 a year later.”

We’ve already got tax cuts coming,” he said when asked whether there would be more in the budget.

We’ve got a tax cut coming on the first of July. Another one coming on the first of July next year, a big part of the budget will be the more than $2.5 billion we’re spending on the fuel tax cut, and we’ve got the standard deduction coming as well.*

u/East_Atmosphere2628 — 19 days ago

▲ 212 r/AusFinance

“The genuine remedy for intergenerational inequality is not a transfer from old to young. It is the restoration of conditions under which wealth accumulation is possible at all: lower regulatory barriers to entry, genuine competition, productivity and dynamism, and **a tax system that does not consume the returns on work and saving before they can compound into something lasting**.”

Great take! Where are the income tax cuts that were strongly recommended at the roundtable to coincide with taxes on existing wealth?

Any “reform” should shake up the income tax brackets, otherwise we will continue to pay record amounts of tax. And no, letting us throw away receipts for a couple hundred bucks at tax time doesn’t cut it.

The share of income tax receipts as a portion of total tax collected is the highest it’s ever been, but you don’t hear about it because the vocal crowd who want to burn boomers at the stake for making wealth, are generally not the same ambitious people who will be burned by the top tax brackets in the future.

Given the high performing stereotype of this sub (driving the camry to your 250k/yr job), how do you feel about this?

u/East_Atmosphere2628 — 26 days ago